PSI Oklahoma Real Estate Practice Test

Albert and Brenda enter into a verbal contract; this is considered what type of contract?

1. Implied contract

2. Expressed contract

3. Executed contract

4. Unilateral contract

The correct answer is: Expressed contract

A verbal contract between Albert and Brenda is classified as an expressed contract. This type of contract is characterized by the explicitly communicated terms between the parties, which can be done either verbally or in writing. In this case, since the agreement was made orally, it signifies that both parties have intentionally agreed to the terms laid out in their conversation. Expressed contracts are valid and enforceable, provided they meet the elements of a contract, such as offer, acceptance, and consideration. This distinguishes them from implied contracts, which are formed by the behavior or circumstances of the parties rather than explicitly stated terms. An expressed contract is also different from an executed contract, which refers to a contract that has been fully performed by all parties, or a unilateral contract, which involves a promise made by one party in exchange for an act by another.